Getting mortgage to blow back mortgage, Punjab oriented having personal debt pitfall: CAG

Getting mortgage to blow back mortgage, Punjab oriented having personal debt pitfall: CAG

Initiating the latest reports of your comptroller and you will auditor general (CAG) to have 2014-fifteen, dominant accountant general Jagbans Singh told you Punjab’s money expenditure (non-productive) are rising since financial support costs (productive) had slowly refuted. (Karun Sharma/HT Photographs)

Despite the tall says created by the Sad-BJP government, the main accountant standard displayed an abysmal picture of Punjab cash if you are providing a loud and you may obvious caution – the official are on course for a major obligations trap since the half of of the economic liability out-of whopping Rs 1.12-lakh crore has to be paid next seven ages.

Starting around three of the four reports of your comptroller and you can auditor general (CAG) to own 2014-15, prominent accountant standard Jagbans Singh said Punjab’s funds costs (non-productive) try growing while the investment expense (productive) got gradually denied. He said a corner of one’s expenses is actually over with the repayment and maintenance the new hefty funds, making little currency on county to pay on development products.

Aside from the state of the brand new funds, the latest records create towards the Monday plus pointed out several cases of misappropriation away from funds worth crores regarding rupees, as well as showing new failing financial wellness of your own personal markets tools.

The fresh CAG along with located a primary mismatch between the dollars borrowing restrict (CCL) desired of the bodies when compared to the stock away from cereals kept because of the condition procurement firms

The new revenue receipts became at the a yearly mediocre speed of 8.27% throughout 2010-11 to help you 2014-fifteen, while cash expense expanded at the an annual mediocre speed off 8.34%. The funds cost (non-productive) proceeded to make-up a dominating piece (93 so you’re able to 95%) of your total expenditure during this time period. The rise in the funds invoices for the 2014-15 (Rs 4,000 crore) has also been due mainly to rise in has off authorities from India.

Brand new money expense (non-productive) increased because of the Rs 5,one hundred thousand crore, while investment expense (productive) increased by Rs 900 crore. The administrative centre expenditure, not, was only 33% of one’s projections built in the fresh fiscal consolidation roadmap.

The newest revenue deficit flower so you’re able to Rs seven,600 crore out of a deficit off Rs 5,3 hundred crore this season-eleven. The us government don’t hold the revenue deficit within maximum away from ‘no per cent’ prescribed regarding the fiscal consolidation roadmap.

Anyone debt risen up to Rs step 1.12-lakh crore regarding Rs 75,100000 crore this year-11. A major portion of borrowings was utilised to possess repayment off before borrowings (47 to help you 70%) and you may cash expenditure (20 to help you 39%). Just 8 to help you 19% of the borrowings had been utilised to own capital expenses while in the 2010-fifteen.

“In the event it practice continues on, Punjab wouldn’t be capable create a lot more revenue to help you solution its debt therefore would have zero option but to increase brand new borrowings every year to repay the new borrowings regarding prior to decades,” states the fresh new statement.

Regulators must pay back 11% of its financial obligation anywhere between step 1-36 months, 20% anywhere between step three-five years and you can 19% ranging from 5-eight decades. It suggests that condition must pay over 50% of the debt within the next seven age. “That is a stunning status plus the county is actually heading to your a significant debt payment condition, which is referred to as financial obligation pitfall,” warns brand new report.

The guy told you a corner of one’s costs is over on cost and you may upkeep brand new significant fund, leaving very little money for invention points

Even though the financial obligation-GSDP (terrible state domestic unit) ratio during the thirty-two% are from inside the target repaired (38.7%) in Financial Obligation and Funds Management Act, the lent finance was basically generally employed for redemption regarding earlier debts. Around 23% of your own cash invoices were utilized so you can service new expenses during the the current seasons.

The fresh new Punjab authorities might have been indulging in a number of big bluffing whenever you are glossing over the profile of your own energy utilities and cereals procurement organizations.

The newest CAG declaration placed in the brand new assembly to the Friday nights provides revealed that while membership of the area of the results and purchase review of the Punjab Condition Electricity Company Restricted (PSPCL) and Punjab County Sign Agency Minimal (PSTCL) was indeed “refurbished” to look top, the official procurement enterprises exorbitant the the arrears by a number of hundred crores.

Whenever you are unbundling the Punjab County Strength Panel, Punjab got set an economic load out of Rs twenty-five,100000 crore into the a few the latest corporations–PSPCL and you can PSTCL–by-passing unfunded liabilities on to her or him. Remarkably, the official government found in order to “refurbish its harmony sheets” from the inflating the equity funding regarding one or two organizations by Rs 3,700 crore from the showing consumer efforts and you can grants and subsidies while the equity investment and in addition to lso are-valued homes possessions regarding Rs cuatro,900 crore whoever possession was not vested in the a couple of successor agencies.

The CAG declaration told you the state procurement providers (SPAs) presented Rs sixteen,350 crore once the recoverable, where Rs eleven,eight hundred crore had been accredited as skeptical. Also, there can be an effective mismatch out-of Rs 21,one hundred thousand crore between your a good CC restrict and you can stock out-of foodgrains stored by such companies.

Attempt consider of one’s records from 281 practices regarding transformation tax/value-added income tax, condition excise, cars, merchandise and you will passengers, forest receipts or any other department offices used by CAG displayed below evaluation/small levy/loss of cash aggregating Rs 2,five hundred crore inside the more 35,one hundred thousand instances. The newest departments were able to recover simply Rs crore.

Besides the condition of the newest money, the accounts put-out toward Friday also mentioned multiple instances of misappropriation out of loans really worth crores from rupees, along with showing the latest a failure financial health of the personal field devices.

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